As Neil MacDonald prepares to take over as Ipswich Borough Council leader, he knows he faces some tough choices as money will be tight.

He has already spoken of his hopes to support the town centre and improve housing provision - but knows another pledge, to run a financial responsible council, will make it more difficult to meet these.

The council's plans to build more homes are already in the pipeline - with schemes for new homes at Ravenswood and the conversion of the former Bibb Way BT offices into homes now at the tender stage.

But the brakes have been put on any new schemes for a while by the rise in interest rates.

Mr MacDonald said: "We had been able to borrow money for projects like this from the Public Sector Loans Board for 0.75% but now that has increased to 4.5%.

"I always said the council had to be financially responsible - so we cannot afford to take on debts we cannot afford. We will have to look carefully before further commitments."

His first executive will be unveiled at Wednesday night's Annual Council meeting and it will see some changes as former leader returns to the backbenches.

Outgoing mayor John Cook will be joining the executive as portfolio holder for communities and sports.

Alasdair Ross will be taking on Mr MacDonald's old portfolio of housing and Bryony Rudkin will remain as deputy leader and take on a new role as portfolio holder for strategy and transformation.

Mr MacDonald is starting his new job just weeks after Helen Pluck became the council's new chief executive.

Both are council "insiders" who have been promoted to their new roles from within the organisation - but both seem determined to put their own mark on the town.  

And Mr Cook's appointment means he cannot take on the ceremonial role as deputy mayor.

That position will be taken by long-serving Labour councillor Elango Elavalakan.